In this technological age, small businesses have the opportunity to save thousands of dollars a year by streamlining their business with payroll software.
If you’re looking for a stress-free and efficient way to handle your company’s data processing needs, you might want to consider payroll software as part of your overall plan.
The first thing that can happen is that it’ll help you cut costs. Many small business owners find payroll software one of the best investments they have ever made.
What’s a Payroll Software?
Payroll software is a system designed to simplify and automate payroll for your employees. It starts by taking the information you enter about your employees, such as name, address, social security number, and other necessary details.
It generates accurate payroll tax forms on their behalf. As time goes on, it’ll keep track of changes in employee information so that you always have the most up-to-date data.
Signs Your Company Needs a Payroll Software
There’s no denying that payroll software can be an indispensable investment for many businesses. Here are seven tell-tale signs your company needs payroll software:
1. Your Employees Are Payroll Wrecks
The first sign that your business needs payroll software is your employees are always asking questions about their earnings and withholding.
If you’re spending more time answering payroll questions than serving customers, or if your employees are unable to keep track of their salaries and other compensation issues, then you may need to consider implementing payroll software.
This type of software can automate calculating employee wages and other deductions, making it less prone to errors and mistakes.
2. You’re Lost in the Payroll Paperwork Maze
The next sign that you need payroll software is spending more time completing and filing payroll tax forms than working on your business.
You should strongly consider getting payroll software if generating and filing tax forms feels like more trouble than it’s worth.
With this system, you can easily manage all of your company’s payroll tax forms online.
You’ll never have to worry about filling out those tedious paper forms again, as these applications are now available with automatic filing capabilities for even more convenience.
3. You’re Wasting Resources on Manual Calculations
When you’re forced to complete manual calculations for payroll, it takes time away from other essential company functions, which can also lead to costly mistakes that need to be corrected.
If you’re currently using several different systems or programs to handle your payroll processing needs or manually encoding data into your accounting system every time you calculate payroll, these are another set of signs to consider payroll software.
This type of system can handle all of your company’s data-processing needs in one place, reduce the likelihood of errors and provide quick access to important information whenever it’s needed.
4. You’re Employees Aren’t Getting Paid on Time
Because you’re wasting too much time on payroll paperwork, you’re also struggling to get paychecks out on time which can be very frustrating for your employees and can cause them to look for other employment opportunities.
If you find that you’re constantly behind schedule when issuing paychecks, payroll software may be the answer.
With an automated system in place, you’ll have the time to complete all of your other business functions without any worry.
5. You’re Payroll Taxes Are a Nightmare
Aside from wasting time, another sign that your business needs payroll software is if you’re currently struggling to keep up with all of the different tax forms required by law.
With a good payroll software system, you’ll be able to stay on top of each one of the many documents you need to file for your employees, including wage and tax statement (W-2), withholding certificate (W-4), miscellaneous income (1099), and others tax forms.
You’ll be pleased to discover that these applications typically come with all the tools you need to download W-2 information into your payroll tax forms right away.
6. You Struggle With Tracking Employee Changes
Another sign that you need payroll software is if your company cannot make accurate wage changes for employees on the fly.
A good payroll software system can make it simple to alter employee wages. If you’re spending more time trying to process these types of adjustments than helping your customers, it may be the best time to consider investing in a good payroll software application.
7. Your Business Is Growing
Finally, the last sign that you need payroll software is if your company is growing.
As your company expands, you’ll likely find it increasingly difficult to keep up with all of the different administrative tasks required.
It’s where a good payroll software application can come in handy, as it can take care of many of the administrative duties for you.
If your company is growing or you anticipate that it’ll soon be, the need for a good payroll software system is another strong sign to consider.
For example, if you’re adding new employees to your payroll and struggling with all of the manual processes required to handle this addition, good payroll software can take care of these things for you.
As mentioned above, payroll software allows you to easily make updates to current employees’ wage amounts and manage all of the required tax forms for each employee.
If your business is growing and you anticipate needing more time to focus on other business aspects, an integrated system can help reduce the burden of calculating payroll taxes and managing employees.
What Are the Benefits?
The signs above should serve as a clear indication of what you’ll be able to gain with a good payroll software system. In a nutshell, here’s a list of the benefits you can expect:
- Reduced chances for human error in calculation and paperwork
- Accurate tax forms filed on time, every time
- Increased efficiency and productivity as a result of streamlined payroll processes
- Quick and easy access to important employee information when it’s needed
- Peace of mind knowing that a reliable software system is handling critical payroll tasks
When it comes to payroll, the benefits of using a good software system are innumerable.
If your company is currently struggling with any of the situations mentioned, it’s time to look into investing in a quality payroll software application.
Ready for the Switch?
With all of the different systems on the market, it can be challenging to decide which one is suitable for your company.
The best way to find the right software is to research and ask around for recommendations from other businesses that have already made the switch.
Once you’ve found a system that looks like it’ll work well for your company, take the time to test it out and ensure that it’s truly up to your standards.
If you’re nodding your head in agreement at any of the abovementioned, it might be time for your company to make the switch.